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June 18, 2015

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Lower-tier cities to lift phone penetration rate

China’s smartphone penetration rate will rise to 73 percent by the end of this year as more people use them in third and fourth-tier cities, a report said.

“In 2015, smartphone penetration increases will mainly come from lower-tier cities, rural areas, middle-aged and low-income consumers and the elderly,” said the report released by consumer research company Nielsen China yesterday.

Nearly 10 percent of rural consumers said they plan to buy a smartphone this year, up from 6 percent in the first quarter of 2014, according to the report.

The 11-percentage-point gain from a year ago to 73 percent is slower than the increases of 15 and 22 percentage points in 2014 and 2013 respectively, the report said.

“We still see big opportunities for consumption in urban areas,” said Oliver Rust, managing director of Nielsen China.

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